In a recent analysis via X (formerly Twitter), the renowned crypto analyst Miles Deutscher has cast a spotlight on artificial intelligence (AI) as the paramount sector poised for significant performance in the ongoing crypto bull run. With a keen focus on Decentralized Physical Infrastructure (DePIN), Deutscher not only forecasts this niche to burgeon into a $3.5 trillion industry by 2028 but also underscores an unprecedented opportunity for early investors.
“AI will be one of crypto’s top performing sectors this bull run,” Deutscher states, emphasizing the strategic advantage of investing in DePIN. “Instead of buying random AI coins, I’m focused on one key beneficiary: DePIN.”
AI will be one of crypto’s top performing sectors this bull run.
But instead of buying random AI coins, I’m focused on one key beneficiary: DePIN.
It’s projected to be a $3.5T industry by 2028, and you have a chance to be EARLY.
🧵: My ULTIMATE DePIN guide (+ top picks).👇
— Miles Deutscher (@milesdeutscher) February 18, 2024
Understanding The Top AI Trend: DePIN
DePIN, an abbreviation for ‘Decentralized Physical Infrastructure’, represents a groundbreaking blockchain protocol. It incentivizes decentralized communities to construct and maintain physical hardware, offering token rewards to users who contribute hardware or software resources to the network. This sector encompasses a broad range of multi-billion-dollar hardware markets, including cloud storage, computing power, and wireless sensor networks.
“Messari predicts that DePIN could add $10 trillion to the global GDP in the next decade, with the potential to reach $100 trillion the decade after,” Deutscher elaborates, highlighting the immense economic impact anticipated from the growth of DePIN.
Historically, physical infrastructure has been monopolized by Big Tech companies, characterized by significant capital and maintenance costs. Deutscher points out, “Physical infra has historically been a Big Tech monopoly […] Giants like AWS capitalize on this by selling their services at a premium.”
DePIN networks, however, offer several advantages over traditional centralized solutions, including cost reduction, the ability to scale horizontally, rewards for network contributors, and enhanced security. “DePIN (decentralized physical infra networks) has many benefits over centralized solutions due to its ability to reduce costs, horizontally scale, reward network contributors, and enhance security,” Deutscher notes.
Key Sectors Within DePIN
Deutscher dives deeper into specific sub-sectors within DePIN, identifying decentralized storage and computing, along with AI infrastructure, as critical areas of growth and innovation:
- Decentralized Storage: Projects in this category aim to create marketplaces for unused storage capacity, offering a more accessible, secure, and cost-effective alternative to centralized storage solutions.
- Decentralized Computing: This segment focuses on leveraging GPU power from across the globe to facilitate complex computations, thereby democratizing access to computing resources.
- AI Infrastructure: Addressing the exponential growth and accompanying scaling challenges of AI, infrastructure projects offer solutions for specialized hardware access, effective collaboration, and data storage.
Best DePin Crypto Coins
Highlighting specific projects within the DePIN sector, Deutscher mentions Akash Network (AKT), Render Network (RNDR), Aethir Cloud, Filecoin (FIL), Arweave, and ATOR Protocol as standout projects:
- Akash Network (AKT): Described as the ‘Airbnb for server hosting’, Akash Network facilitates an open marketplace for decentralized cloud services. “Akash’s model disrupts traditional cloud hosting, offering a cost-effective and scalable alternative,” Deutscher highlights.
- Render Network (RNDR): Tapping into underutilized GPU power, RNDR facilitates advanced AI and 3D rendering capabilities, with network activity showing consistent month-over-month growth.
- Aethir Cloud: Poised for a highly anticipated launch, Aethir Cloud boasts significant partnerships and infrastructure commitments, positioning it as a potentially transformative player in the DePIN landscape.
- Filecoin (FIL): Identified as Deutscher’s top decentralized data storage pick, FIL showcases robust growth metrics across multiple verticals, including a substantial increase in storage capacity and user base.
- Arweave: Specializing in permanent data storage on the blockchain, Arweave is highlighted for its application in projects requiring long-term data preservation.
- ATOR Protocol: Serving as scalable privacy middleware, ATOR Protocol enhances privacy for DePIN and other crypto projects through innovative hardware solutions. “ATOR Protocol’s use of relays to maintain anonymity while rewarding users is a game-changer for privacy in the digital age,” Deutscher remarks.
Deutscher’s analysis concludes with a call to action for investors and enthusiasts alike, urging them to look beyond the surface of the burgeoning AI trend in crypto and consider the foundational shift DePIN represents. “As we stand on the brink of a new era in technology and economics, the DePIN sector offers a rare opportunity to be part of something truly transformative,” he asserts, adding that “each sub-sector disrupts a $1T dollar industry.”
Deutscher concludes, “DePIN generates more than $15 million in annual on-chain revenue, and this number is set to grow rapidly in the coming years.” This financial viability, combined with the sector’s vast potential for disruption across trillion-dollar industries, solidifies DePIN’s position as a compelling investment opportunity in the burgeoning crypto landscape.
At press time, RNDR traded at $6.15.
Featured image from iStock, chart from TradingView.com
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